Rethinking Assessment in the Age of AI: Challenges and Opportunities for Business Educators

Artificial intelligence (AI) is increasingly reshaping higher education, with assessment practices emerging as one of the most affected areas. As generative and analytical AI tools become more accessible in academia, long-established approaches to assessment are being questioned, particularly within professional disciplines such as business education. This paper examines how AI is influencing the design and purpose of assessment in higher education, with a focus on pedagogical and ethical implications. Adopting a conceptual research approach based on secondary sources, the study synthesises peer-reviewed literature, policy discussions, and established assessment frameworks to explore both the opportunities and challenges associated with AI-enhanced assessment. It considers the role of automated grading systems, and generative AI tools in supporting feedback, personalising learning, and enhancing student engagement, while critically examining concerns related to academic integrity, data privacy, authenticity, and fairness. The analysis suggests that many challenges attributed to AI reflect pre-existing limitations within traditional assessment models. It argues that meaningful assessment in the age of AI requires a shift away from output-focused examinations towards more authentic, competency-based approaches. The paper concludes with practical recommendations for educators and institutional leaders seeking to design assessment systems that are transparent, inclusive, and responsive to evolving educational and professional contexts.